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Oct 2nd, 2013, 04:53 AM
#1
Thread Starter
Addicted Member
This interest rate, how ?
Hi,
I used these formulae to code a loan calculator with reverse calculating the three variables below,
Payment, Amount borrowed, and Number of months
Unfortunately, I have no idea how to get at the interest rate.
I would be a happy beginner if I could achieve this ultimate step.
Thanks for your help.
A : Amount borrowed
N : Number of months (in this example)
I : Interest rate = I / 1200 (convert annual interest rate to monthly rate)
P : Payment
The payment is calculated by this formula:
P = (A x I)/(1-(1 + I)^(-N))
The amount borrowed is given by the formula:
A= P x (1-(1 + I)^(-N)) / I
And the number of months is given by the formula:
N = (log(P) - log(P - A x I))/(log(1 + I) with (P - A x I) > 0
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